The Union cabinet approved an increase in support prices for winter crops and an allowance for staff and pensioners to mitigate the impact of inflation ahead of Diwali. The cost of the minimum support price for rabi crops amounts to ₹87,657 crore, with the Union budget allocating ₹2 trillion for food subsidies in the current fiscal year.
Union minister Ashwini Vaishnaw stated that the decision to raise support prices for rabi crops was based on expert panel advice to ensure adequate remuneration for farmers, consider demand-supply dynamics, and its economic implications.
Additionally, an extra dearness allowance for central government employees and dearness relief for pensioners was approved, representing a 3% increase over the existing 50% of basic pay or pension. This adjustment will cost an additional ₹9,448.35 crore annually, benefiting around 4.9 million employees and 6.5 million pensioners.
The cabinet also gave the green light to a railway project for expanding capacity in Varanasi and Chandauli districts in Uttar Pradesh, valued at ₹2,642 crore.
The increase in MSP for six rabi crops aims to ensure a margin of 50-105% over production costs, benefiting farmers and garnering support for government policies within the agricultural community.
Former secretary Siraj Hussain highlighted the importance of protecting MSP for gram, masur, and mustard, emphasizing the need to stabilize prices in the market.
The MSP hike for oilseeds like rapeseed and mustard reflects a strategy to boost domestic production and reduce edible oil imports, while increases for lentil, wheat, gram, barley, and safflower aim to sustain profitability for farmers and align with the government’s commitment to setting MSPs at 1.5 times the cost of production.
Data from the agriculture ministry indicates a decline in pulse production, leading to increased imports as per the consumer affairs ministry. Measures like the MSP hike and rail project approval are geared towards addressing these challenges and supporting agricultural sustainability.
